Greenmail

Greenmail refers to a practice in corporate finance where a company buys back its own shares at a premium from a shareholder who has threatened to launch a takeover bid or initiate hostile actions against the company. This premium payment is made to the shareholder as an incentive for them to abandon their takeover attempts or sell their stake in the company. Greenmail is often seen as a defensive tactic employed by companies to deter hostile takeovers and maintain control over their operations.